This document is available in two formats: this web page (for browsing content) and
PDF (comparable to original document
formatting). To view the PDF you will need Acrobat Reader, which may be downloaded from the Adobe site. For an official signed copy, please contact the
Antitrust Documents Group.

FOR IMMEDIATE RELEASE
THURSDAY, MAY 30, 1996

AT
(202) 616-2771
TDD (202) 514-1888

JUSTICE DEPARTMENT CALLS ON THE FCC TO ADOPT STRONG POLICIES
TO PROMOTE LOCAL TELEPHONE COMPETITION

JUSTICE DEPARTMENT STUDY SAYS COMPETITIVE PRICING AMONG TELEPHONE
CARRIERS COULD LEAD TO ALMOST $12 BILLION IN SAVINGS TO CONSUMERS

WASHINGTON, D.C.  In comments filed today with the Federal
Communications Commission, the Department of Justice unveiled an economic
analysis estimating that more price competition in local telephone markets
could lead to almost $12 billion in savings to consumers. The Department
also called on the FCC to adopt strong procompetitive policies to carry out
the new Telecommunications Act and create local telecommunications
competition throughout the United States.

In addition, the Department said that competition could produce
substantial savings in optional services such as call waiting and call
forwarding, and savings for business telephone customers, that were not
specifically estimated in the Department's analysis.

The Department's Antitrust Division filed its comments as part of the
FCC's ongoing rulemaking process to implement provisions of the
Telecommunications Act of 1996 which require local telephone monopolies to
make their facilities and services available to new competitors.

Anne Bingaman, Assistant Attorney General in charge of the
Department's Antitrust Division, said, "These results dramatically show the
real benefits to consumers of full competition in telecommunications. The
Administration and Congress together have made this competition possible,
and the FCC and state regulatory commissions should now take all the
necessary steps to enable full competition in telecommunications to become
a reality."

More than 170 comments were filed in the initial round of the
rulemaking process. In the initial round of the comments, the Department
stressed the need for clear national rules on interconnection and access to
local telephone company networks and ensuring that competitors will be
charged reasonable prices for both.

In today's comments, the Department estimated that competitive pricing
could lead to almost $12 billion in savings annually to consumers on their
basic local residential and long distance telephone services bills.

The Department urged the FCC to:

Require monopoly local carriers to make interconnection and network
elements available at competitive, forward-looking costs, rather than
the historical costs of inefficient monopolists.

Not restrict the competitive use of interconnection and unbundled
elements or the ability of competitors to resell the services of local
carriers.

Prohibit parties negotiating interconnection agreements from seeking
terms that would prevent disclosure of information to government
agencies.